Tractor Supply Company (TSCO)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,805,480 | 9,767,900 | 9,784,520 | 9,554,950 | 9,188,150 | 9,205,010 | 9,032,820 | 8,848,820 | 8,489,990 | 7,911,730 | 7,869,190 | 7,686,810 | 7,767,470 | 7,745,190 | 7,687,890 | 7,359,680 | 7,049,120 | 6,860,800 | 6,611,080 | 6,002,400 |
| Total stockholders’ equity | US$ in thousands | 2,270,330 | 2,288,760 | 2,305,330 | 2,124,010 | 2,149,760 | 2,111,130 | 2,087,150 | 1,914,550 | 2,042,420 | 1,941,140 | 1,913,870 | 1,790,020 | 2,002,660 | 2,020,750 | 1,980,110 | 1,852,300 | 1,923,840 | 1,875,870 | 1,695,730 | 1,353,720 |
| Financial leverage ratio | 4.32 | 4.27 | 4.24 | 4.50 | 4.27 | 4.36 | 4.33 | 4.62 | 4.16 | 4.08 | 4.11 | 4.29 | 3.88 | 3.83 | 3.88 | 3.97 | 3.66 | 3.66 | 3.90 | 4.43 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,805,480K ÷ $2,270,330K
= 4.32
The financial leverage ratio of Tractor Supply Company has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio ranged from a high of 4.62 on March 31, 2023, to a low of 3.66 on September 30, 2020, and December 31, 2020. Overall, the trend indicates that the company's financial leverage ratio has generally increased over time, reaching 4.32 by December 31, 2024.
A financial leverage ratio above 1 indicates that a company is using debt to finance its operations. In this case, Tractor Supply Company's financial leverage ratio consistently remains above 1, indicating that the company has been relying on debt for its operations and investments. This may signal a higher level of financial risk as the company has increased its debt levels during the period analyzed.
It is important for investors and stakeholders to monitor the financial leverage ratio of Tractor Supply Company to assess its ability to meet its debt obligations and manage financial risk effectively. A rising trend in the financial leverage ratio may suggest a need for increased scrutiny of the company's debt management strategies and overall financial health.
Peer comparison
Dec 31, 2024